“Choice matters for Australian home buyers and it has to be protected; choice fuels competition and competition should keep all the players honest and accountable. Removing access to choice and competition in the home lending sector is simply handing more power back to the major banks, which is exactly what Australians don’t need,” said Mr Haron.

Mr Haron said he rejected calls to change the way brokers are remunerated but supported the need for the industry to strive towards better outcomes.

“The model for how mortgage brokers is paid is not fundamentally broken. There is always room for improvement, but broker remuneration has been scrutinised in multiple reviews over recent years, with none of these studies finding systemic misconduct and none advocating substantial reform,” he said.

“This could force up-front commissions to rise in order to compensate for reduced revenues to brokerages, which in turn will lift interest rates and make housing affordability more difficult,” he said.

The government also does not seem to be in a rush to implement the brokers recommendations with Treasurer Josh Frydenberg telling reporters the government would consider the ramifications of a changed fee structure.

“With regards to mortgage brokers, we are putting in place a best interest duty, banning trailing commissions and volume-based bonuses on new loans from the 1st of July 2020.

“In terms of moving to a borrower pays remuneration structure, there will be a review in three years of the implications of doing so, bearing in mind that the Productivity Commission, the Murray and the Sedgwick reviews, all raise concerns about the effects of competition of a change to a borrower pays model,” he said.

INSIGHT: Alex Whitlock, director of Momentum Media, shareshis views on what the Royal Commission means for Australian borrowers and competition.